PRECIOUS-Gold trades little changed ahead of Fed decision

Reuters Staff

3 Min Read

BENGALURU, June 13 (Reuters) - Gold prices were little
changed on Wednesday ahead of the U.S. Federal Reserve's policy
decision which could give cues on future rate hikes.
FUNDAMENTALS
* Spot gold was nearly unchanged at $1,295.22 per
ounce at 0051 GMT.
* U.S. gold futures for August delivery were 0.1
percent lower at $1,298.80 per ounce.
* The dollar index against a basket of six major currencies
inched up 0.03 percent to 93.834 after rising 0.24
percent the previous day. The dollar was 0.1 percent higher at
110.42 yen after touching 110.54, its highest since May
23.
* With the Federal Reserve virtually guaranteed to raise
interest rates at its two-day meeting this week, investors are
focused on how the U.S. central bank characterizes its monetary
policy as borrowing costs return to more normal levels amid an
ongoing economic expansion.
* The U.S. central bank's staunchest advocate for faster
interest-rate hikes is set to regain the power to vote at the
Federal Reserve's rate-setting meetings starting next month, but
the shift is unlikely to mean faster rate hikes under Chair
Jerome Powell.
* U.S. monthly consumer inflation rose moderately in May as
gasoline price increases slowed, suggesting the Federal Reserve
could continue to gradually raise interest rates this year.
* A Fed statement and press conference is expected from 2
p.m. EDT (1800 GMT) on Wednesday.
* U.S. President Donald Trump made a stunning concession to
North Korean leader Kim Jong Un on Tuesday about halting
military exercises, pulling a surprise at a summit that baffled
allies, military officials and lawmakers from his own Republican
Party.
* Trump on Tuesday kept up his feud with America's closest
allies over trade, saying he could not allow them to continue
taking advantage of the United States.
* Canadian Prime Minister Justin Trudeau, facing the threat
of a trade war from Trump, has unanimous domestic support for
now but to keep a firm hold on power must wring concessions from
an unwilling powerful dairy lobby in order to mollify
Washington.
* Italy's new minister for EU affairs sought to reassure
investors and other European capitals on Tuesday about the
government's stance on monetary union, saying the euro was
"indispensable", and denying he ever suggested leaving the
single currency.
* European Central Bank policymaker Ewald Nowotny views the
situation in Italy with concern but does not believe it will
"come to an actual crisis", he was quoted as saying by Austrian
newspaper Kleine Zeitung on Tuesday.
(Reporting by Karen Rodrigues in Bengaluru; Editing by
Subhranshu Sahu)